Toyota's troubles

TOYOTA WILL survive its recent recall crisis. But the reputation of the world’s biggest carmaker may take years to rebuild

TOYOTA WILL survive its recent recall crisis. But the reputation of the world’s biggest carmaker may take years to rebuild. The belated apology from the firm’s president over a recall of 8.5 million vehicles for “unintended acceleration” and braking problems has become a case study in public relations mismanagement. Yet Akio Toyoda’s statement at a US government hearing into the firm’s handling of the recalls struck the right tones of contrition.

Whether it reassures its customers that their cars are now safe remains to be seen: unintended acceleration in the firm’s cars has been linked to over 30 deaths in the US.

Toyota’s defenders suggest the media and political furore over the recalls is being stoked by US automakers, overtaken by the seemingly unstoppable Japanese brand as they themselves struggle for survival. The Japanese carmaker can also point out that 23 million cars were recalled in the US in the last three years. Toyota’s latest recalls there totalled 5.6 million vehicles. In Ireland there were 170,712 vehicles in 82 recall events last year. In total 18,192 Toyotas have been recalled here over the acceleration and brake problems.

Although there was undoubtedly some geopolitical point-scoring at play, Toyota’s recalls strike at the core of its reputation. A company that claims to offer “the best built cars in the world” will always come a cropper when fundamental safety concerns are raised about its vehicles. Owners will hardly be reassured by the comments of Toyota’s US sales president that it may not know the cause of unintended acceleration in as many as 70 per cent of reported incidents. There are several outstanding lawsuits that claim the acceleration problems are not related to sticking pedals as Toyota maintains, but rather to electronic problems.

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For all the immediate safety concerns, the most damaging claim is that Toyota “was a little safety deaf”, according to US transportation secretary Ray LaHood, and dragged its feet on recalls. Modern vehicles are increasingly complex, comprising hundreds of mechanical and electronic parts that must cope with the rough and tumble of daily use and irregular checks. Owners will grudgingly accept when defects arise if they believe problems are being rectified. Any suggestion that a car firm has failed to investigate complaints in a timely fashion – or in the worst case delayed implementing a recall for the sake of cost-savings or protecting the brand’s image – has the potential to destroy that trust. History shows that can take much longer to repair.